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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: JustLearning who wrote (13231)	7/24/2001 6:53:36 PM
From: puzzlecraft	Read Replies (1) \| Respond to of 196584

I too am quite happy the spin-off did not happen. I had great difficulty visualizing how the parent would gain new IPR as the engineering / design would move to Spinco leaving the parent with a frozen snapshot of technology with IPR eventually expiring.... or if the engineering / invention remained with the parent, this would put Spinco in a dependency mode and the engineering once removed from the real silicon? Also the combined companies enable accountants to smooth rough edges out.

To: JustLearning who wrote (13231)	7/25/2001 8:08:19 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 196584

Regarding the canceled spin-off, the published reason is that, with the Nokia and other licenses granted since the idea was first proposed, it is no longer necessary. A second but equally important reason is that the spin-off would be priced at some percentage of QUALCOMM, based on the proportion of asset value. That price in today's market would be very low, in essence, giving away the store. I'd much prefer that QCOM remain a single entity at the present moment. In the future, once the stock price gets closer to its potential (based not only on earnings growth but more importantly, on the growth in book value per share), a spin-off might enhance the value of each. Right now, the result would be something akin to Lucent selling Agere -- yuck! Art